From the very first email she sent, we knew Zana was a very knowledgeable professional buyers agent, focused on meeting our needs. She over-communicated on every detail, making sure that all discussions she had with other real estate agents, settlement agents and banks were documented and that we knew what was happening at each step. This was just the assurance we needed as we were buying the home without seeing it with our own eyes.

My wife and I had quite particular requirements for our new home, but Zana was quick to anticipate our needs, allowing us to quickly narrow down the search. Her attention to detail was fantastic. No stone was left unturned.

We were not pressed for time to buy the house, but the whole process of searching and negotiating with the seller, which Zana facilitated, went so smoothly that we made an offer within 3 weeks of contacting her, and the keys were handed over within 1 month after that.

Zana also put us in contact with the best bankers, settlement agents and rental agents, which added to our peace of mind and made everything run without any problems.

Zana’s reputation is definitely well deserved and we would recommend her to anyone wanting to buy a home in Perth.”

The inner northern suburbs currently appear to be the best place to own rental property in Perth. If you are chasing better than average yields and have allocated a budget of:

1. Units under $400k

   Higher than average yields at the cheaper end of the market are to be found in the inner northern suburbs of Glendalough, Wembley and West Leederville,and also in the inner southern suburb of Victoria Park. All of these suburbs have a proximity to the CBD of less than 5 km with good transport links. Wembley is the only suburb out of the four that does not have a train station but there are frequent bus services along Cambridge Street. Wembley and West Leederville are both within walking distance to a major private hospital and the popular entertainment hub of Subiaco. These suburbs are also a short ride to the most popular Perth beaches. The rental yields of 1 bedroom apartments in these areas are often over 5%. If your budget is able to be expanded to around $350k or more there are some good two bedroom apartments to be found.

2. Units $400k to $500k

   East Perth is situated in a free transport zone, close to the river and the CBD. Renters like the convenience of free transport and an inner-city lifestyle making it a very desirable place to rent. East Perth regularly records high yields for Perth’s metropolitan area. In this locality a savvy investor will find both a rich housing stock of relatively cheap older style apartments and an abundance of new inner city units with resort style facilities. It is important to note that there can be high strata fees associated with new high-rise buildings with these facilities.

3. Units over $500k

   West Perth is an affluent and desirable area where resource companies are clustering, hence it is very popular for executive rentals. Like East Perth it is close to the CBD and within a free Perth transport zone. An extra benefit is its close proximity to iconic Kings Park and walking distance to Subiaco’s entertainment precinct. Two bedroom apartments are expensive (often around $600k) but usually fetch yields of over 6%, especially if rented out fully furnished. Three bedroom apartments usually sell for at least $700k with an equally, or even more impressive yield, once let out, especially if furnished for executive rental.The current voids in East and West Perth are very low and the rental market is heating up (Jan 2012)

If you are buying with the aim of holding your asset over the long term and you can afford some negative gearing for the sake of long term capital gains, here are some areas with potential:

1. Scarborough – It has long been a popular destination for tourists and one of the most affordable beachside suburbs. There is a major redevelopment currently underway which is changing the face of the beachfront.
2. Ashfield and Bassendean – This is a rather cheap area with lots of social housing that is only 9 km from the CBD, with a direct train line to the City and close to the Swan River. It has the potential of being positively affected by the redevelopment of the Perth Airport. In addition to the possible effect of the redevelopment, the Town of Bassendean has plans for the river shore revitalization.
3. Kingsley and other northern suburbs that the City of Joondalup has marked for rezoning. See this link for details on pockets that are affected by this plan: Joondalup City Rezoning Proposal
4. Bentley and Wilson – Proximity to Curtin University guarantees both good rental yields and some land appreciation.
5. Bull Creek and Leeming – Both suburbs are close to the new Fiona Stanley Hospital which is nearing completion.
6. East Perth – There is a major project currently transforming East Perth into a modern waterfront community with a whole range of entertainment, commercial and residential activities. For details see link: East Perth Redevelopment Project

1. Brand new property. Foreign nationals can buy a brand new apartment, villa or house that has never been sold before and is offered for sale directly by the developer. A foreign investor is not allowed to buy an established home or a property that has previously been sold to a private individual or company as an ‘off-the-plan’ opportunity. The sale is required to come straight from the developer to be considered ‘brand new’ under the Foreign Investment Review Board (FIRB) rule. The Offer must be written subject to FIRB approval which is usually granted within 30 days.See link: http://www.firb.gov.au/content/real_estate/residential.asp
2. Vacant land for residential development. When buying land the foreign national needs to adhere to certain rules:
   • Vacant land can be purchased for a single residential dwelling, but construction must commence within 24 months of purchase.
   • The same rule applies to multiple residential dwelling blocks, with the additional condition that at least 50 per cent of the acquisition cost or the current market value of the land (whichever is higher) must be spent on the development.
   • Also, as with brand new properties, the Offer for purchase of land needs to be written subject to FIRB rule.

   The brand new properties or (developed) vacant land properties acquired under this category may be rented out, sold freely at any time or retained for the investor’s own use.

3. Managed tourist developments.
   Foreign nationals can buy an interest in the tourist or time-share commercial developments, for example, a hotel room in a strata-titled hotel where that room is managed by the hotel operator. However, you are not entitled to purchase a unit in a hotel building that is owner-occupied, or rented out privately by the owner, as this property is not considered to be part of the hotel.

Back to Home
Back to Buying in WA

If the temporary visa expires without being converted into a permanent residency, and the foreign national leaves Australia, the established property is not entitled to be kept as an investment property. In order to comply with FIRB rules, an established property that is purchased under a temporary visa has to be sold prior to the temporary resident leaving Australia. This rule does not apply to brand new properties, which are entitled to be kept once the temporary resident leaves Australia.
None of these rules apply to permanent residents.

Back to Home
Back to Buying in WA

Western Australia has adopted a similar model of property buying to the one practiced in Canada. The property buying process in both countries is streamlined and similarities exist, but in practice Perth property buyers do not seem to get as fair a deal as Canadian buyers. The points below highlight some of the key differences:

• Property buyers in Canada have the right to be represented by a buyer agent and do not have to pay for this right, as the buyer agent is entitled to share a portion of the Listing Agents Fee.
• Buyers in Perth, Western Australia, have no such guaranteed right but can opt to pay for the service. Property Buyers Services is a Perth buyer agent who can help you negotiate a property on a NO PURCHASE-NO CHARGE principle.
• A conjunctional sale (split commission sale between the selling and buying agents) in Western Australia is a discretionary right left entirely to the selling agent’s judgment.
• A conjunctional sale in Canada is mandatory, with the selling agent having no right to refuse a conjunctional buyer agent chosen by the buyer. Not in Western Australia.
• A selling agent in Western Australia has the right to discriminate against a conjunctional buyer agent in Perth chosen by the buyer.
• In Western Australia, the buyer does not have the right to make a complaint if the selling agent refuses to work with their conjunctional agent; only the seller, through the selling agent’s principal, can make a complaint.
• In both countries, the document used when presenting a formal offer to the seller is referred to as the Offer and Acceptance document. Once signed by both parties it is a legally binding contract.
• Western Australian selling agents act as dual agents in more than 98% of cases, i.e. they represent both seller and buyer. In Canada, the selling agent can also act as a dual agent and represent both parties, but this is very rare. In cases when it is practiced, the Canadian selling agent has to disclose the conflict of interest to the buyer. Under these circumstances, in Western Australia there is a conflict of interest where the contract (not only the property price but also the additional terms and conditions) is written by the selling agent who is paid by the seller.

So, although the principles of the Western Australian system are similar to those of the Canadian system, their implementation has been skewed to favour the seller, creating potential problems for the buyer.

Back to Home
Back to Buying in WA

Back to Home
Back to Perth Buyer’s Hints & Tips

Back to Home
Back to Perth Buyer’s Hints & Tips